Afcons Infrastructure Share Price in Focus: Strong Post-Listing Surge

Shares of Afcons Infrastructure Ltd, part of the Shapoorji Pallonji Group, made their debut on November 4, 2024. The stock was listed at ₹426 on the National Stock Exchange (NSE) and ₹430.05 on the Bombay Stock Exchange (BSE), both at a discount of around 7-8% from the issue price of ₹463. The stock initially declined further, with a drop of up to 9.31% on the BSE. However, by the end of the day, it managed to recover, closing above ₹470. 

After a sluggish start on the BSE and NSE, Afcons Infrastructure’s share price saw a surge in buying interest from Indian stock market investors. Since its listing, the share price has increased by 16.52%. 

IPO Subscription and Details
Afcons Infrastructure’s IPO was a success, with the issue being subscribed 2.63 times on its final day of bidding. The IPO raised ₹5,430 crore, consisting of a fresh issue of ₹1,250 crore and an Offer-for-Sale (OFS) of up to ₹4,180 crore by promoter Goswami Infratech Pvt Ltd. The price band for the IPO was set between ₹440 and ₹463 per share.

Use of IPO Proceeds
The company plans to utilise the funds raised in the following ways:

• ₹80 crore to purchase construction equipment
• ₹320 crore for long-term working capital
• ₹600 crore to repay existing debt
• The remaining funds are for general corporate purposes

Company Overview
Afcons Infrastructure, founded in 1865, is a leading player in the infrastructure, engineering, and construction sectors. The Shapoorji Pallonji Group, to which Afcons belongs, has a diversified portfolio in industries such as real estate, water, energy, and financial services worldwide.

Recent Project Win: Bhopal Metro Phase 1

Bhopal Metro Contract
Afcons Infrastructure recently emerged as the lowest bidder (L1) for the construction of Package BH-05 of the Bhopal Metro Phase 1 project. This package involves building the 12.915 km Blue Line (Line-2), connecting Bhadbhada Chauraha to Ratnagiri Tiraha. The bid amounted to ₹1,006.74 crore.

Details of the Project
Afcons will be responsible for constructing the entire viaduct, 13 stations, and a ramp leading to the Subhash Nagar Depot. This depot will also serve the Orange Line of the metro. The contract has a three-year completion deadline and is funded by a €400 million loan from the European Investment Bank (EIB).

On November 6, 2024, Afcons Infrastructure’s share price opened at ₹499.15 and touched the day high of ₹513.50 at 10:55 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.